A PROJECT REPORT
CUSTOMER SATISFACTION ON HYUNDAI MOTORS LAKSHMI HYUNDAI INDIA LTD
BY V.NIRMALA ROLL.NO: 08141E0004 Submitted in partial fulfillment of award of Degree of MASTER OF BUSINESS ADMINISTRATION (2008 – 2010)
SWAMI RAMANANDA TIRTHA INSTITUTE OF SCIENCE AND TECHNOLOGY, AFFLIATED TO JNTU, AICTE, RAMANANDA NAGAR, NALGONDA.
Page 1. INTRODUCTION Introduction to automobile industry Objective of the study Need of the study Limitations of the study Tools and techniques 2. REVIEW OF LITERATURE 3. COMPANY PROFILE 4. UNDERTAKING KEY DELIVARIES 5. DATA ANALYSIS AND INTERPRETATION 6. FINDINGS AND SUGGESTIONS 7. ANNEXURE 8. BIBLIOGRAPHY 9. HYUNDAI CAR MODELS 18-23 24-30 31-44 45-59 60-62 63-68 69-70 71-74 3-17
Robert Anderson. A Scotsman. According the History of Automobile Industry US. made the new invention (that is. beginning in the early 1980s. and required ample starting time. however. Development of roads made travelling comfortable and as a result. the U. military tractor that made the use of a steam engine. dominated the automobile markets around the globe with no notable competitors. This automobile. was a self-powered. The range of the automobile. The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. in fact.A. The several methods adopted by Ford. Oliver Evans was the first to design a steam engine driven automobileintheU. electric battery driven automobiles were no more the best option for travelling over longer distances. the car) popular amongst the rich as well as the masses. three-wheeled.S Automobile Industry was flooded with foreign automobile companies. it could only run at a stretch for fifteen minutes. especially those of Japan and Germany. Cugnot invented the first automobile to run on roads. However.Automobile Industry History
In the year 1769. In addition.S. Thomas Davenport of the U. the short ranged. making use of nonrechargeable electric batteries in 1842. However. a French engineer by the name of Nicolas J. was the first to invent an electric carriage between 1832 and 1839. This lead to the development of the industry and it first begun in the assembly lines of his car factory. after the end of the Second World War in 1945.S.
. was very brief and at the most. the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles. these automobiles were not fit for the roads as the steam engines made them very heavy and large.
Those who are interested in gathering more information about the Automobile Industry. whereas the Automobile Industry in the developing nations. India. in terms of the total volume of automobile units manufactured worldwide. Russia.S. still remain the worldwide leaders of the World Automobile Industry.
As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the association of the companies involved in World Automobile Industry). and China). the automobile manufacturers in the U. the World Automobile Industry is now focused on the developing markets of South America and Asia. India and Brazil.The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets. With the developed markets almost saturated.S. may browse through the following links
• • • •
World Automobile Industry Automobile Industry Trends India Automobile Market India Automobile Industry
The World Automobile Industry is turned to the developing markets. However. and Eastern Europe with special emphasis on BRIC (Brazil.
. ahead of the rapidly growing Toyota Motor Corporation of Japan. have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets. such as. for the fiscal end in 2006. have been overtaken by those in Japan. the struggling General Motors of the U. by a substantial margin.
S. to add to the growing national economy of these two nations. The automobile markets in the U. As a result of this. and to make a name for themselves.. The effective measures include :
• • •
Reducing the selling prices of the automobiles manufactured in their factories Improving the levels of after-sales services to keep customers satisfied Opening manufacturing factories in the developing nations. Several significant economic measures are being considered by the major players of the World Automobile Industry in order to make a smooth entry into the markets of the developing countries.
. the leading automobile manufacturers are turning to the Asian markets that appear set to grow immensely over the next decade. to reduce effective costs of production as well as saving shipping charges. are constantly increasing in size and will be the destination for most of the globally leading automobile manufacturers. and India are backed by their huge population growth rate. India. leading Automobile manufacturers of the world are setting up factories in the emerging markets. and enhancing prompt delivery of automobile units. The rapid growth of the national economy of the BRIC countries (including Brazil.Measures to be adopted by global leaders of the World Automobile Industry. The Automobile Industry Trends reveal that the emerging markets of the developing nations of Asia especially China. and China) have enabled a growing section of the population of these countries to purchase automobiles. In contrast. these emerging automobile markets will account for nearly a whooping 90 percent of the global automobile sales growth. Europe and the Japan have almost matured as a result of saturation and appear set to decline through the next decade. Global surveys conducted recently reveal that within the next ten years.
Automobile Industry Trends
In keeping with the Automobile Industry Trends. Russia. the automobile markets spread over the entire Asian continent (with the exception of Japan).
was very close to the 15. that ended in 2006. the total number of automobiles manufactured by the Automobile Industry in India.5 lakh (1. In addition. The prosperity of the national economy is reflected in the rising per capita income of the developing nations. these arrangements are enabling the leading global automobile manufacturers to compete with the local automobile manufacturers. was very close to a 18 percent over the previous fiscal.in order to serve the potential consumers better as well as reduce manufacturing and shipping costs.
. that were flourishing in the absence of quality competition. these aging numbers necessitate automobiles to fit the physiological change of the world population. Therefore. The passenger cars are referred to. The India Automobile Market is a promising industrial sector that is growing immensely every passing year. The huge of number of automobiles manufactured by the Automobile Industry in India was an enormous growth upon the number of automobiles manufactured during the previous fiscal. As per the survey conducted by the Society of Indian Automobile Manufacturers. increasing Gross Domestic Product and per capita income have raised the purchasing ability of the population that constitutes these emerging markets As a growing percentage of the population in the developed nations age rapidly.5 million) margin. through the use of the word "automobile. 2007. This statistical fact is a glittering example of the potential of the growing Automobile Industry in India. The Emerging India Automobile Market. in comparison to the rest of the world. that is the financial year end in February. throughout the financial year 2006-07." The whooping growth experienced by the Indian Automobile Market in the last financial year itself.
2004. largely due to the growing market for automobiles that is developing in India. the growth rate in 200304 was 15. The Indian passenger car market which ranks amongst the largest in the world. The data obtained from ministry of commerce and industry.
. India Automobile Industry Following India's growing openness. the Indian automobile markets were the fastest growing in the world. 2004.0 lakh (2. with the registered growth rate touching nearly 20 percent.02 in automobile production continuing in the first three quarters of the 200405. which enjoys nearly a 2/3rd market share of the entire market for automobiles in India. The export of cars manufactured in India comprised nearly 13 percent of the total number of cars manufactured domestically by the Automobile Industry in India. is poised to become even more larger and enter the top five passenger car markets in the world in the next decade. behind Japan.0 hundred thousand) margin. Annual growth was 16. shows high growth obtained since 2001. an encouraging sign for the Automobile Industry in India. The India Automobile Market looks set to prosper. The Automobile Industry in India mainly comprises of the small car section. In the financial year that ended in February. the Indian markets are the largest in the world for small cars.0 per cent in April-December. the arrival of new and existing models. In this respect.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.The total number of cars that were exported from India were very close to the 2.
Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd
.000 crore. Major Manufacturers in Automobile Industry
• • • • • • • • • • • • • •
Maruti Udyog Ltd.000 crore in 2002-03. 74 billion) in 2003-04. which was above Rs. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd.00.1. Automobile Dealers Network in India In terms of Car dealer networks and authorized service stations. Maruti leads the pack with Dealer networks and workshops across the country. the turnover of the automobile industry exceeded Rs.000 crore ( USD 22. the automotive industry's turnover.With investment exceeding Rs. General Motors India Ford India Ltd.518 crore in 2002-03. 59. 50. is estimated to have exceeded Rs. Including turnover of the auto-component sector. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. 84. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.
99 and 1999-00.2 million in 1998. After a temporary slump during 1998.Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector.3 million in 2003-04. such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and.8
THE KEY FACTORS BEHIND THIS UPSWING Sales incentives. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector.a-half times the export figure for 2001-02.6
2004-05 (Apr-Dec) 121478 3892 19931 256765 51535 32. introduction of new models as well as variants coupled with easy
.99 to 7. Automobile Export Numbers
Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth
1998-99 25468 2654 10108 100002 21138 -16. The production of total vehicles increased from 4.
Further. However. there is a greater preference for motorcycles followed by scooters. to achieve a sales turnover of Rs. the impact of delayed monsoons on rural demand. this sector has emerged as another sunrise sector. the fastest growth in volumes has come from commercial vehicles as against passenger cars. Growth of exports of 32. Today.availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. and increase in the costs of inputs such as steel are the key concerns for the players in the industry. Furthermore. there is a potential for higher growth due to outsourcing activities by global automobiles giants. the competition may intensify further. there were 7 two-wheelers produced. for every passenger car turned out by the sector.30. two-wheeler output continues to dominate the volume statistics of the sector.2 times increase in passenger cars. As the players continue to introduce new models and variants. In the two wheeler segment. output of commercial vehicles has grown 2. The auto component sector has also posted significant growth of 20 per cent in 2003-04. In 2003-04. The risk of an increase in the interest rates. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. Between 1998-99 and 2003-04. mopeds have registered low or negative
.7 billion).640 crore (US$ 6.8 times compared to the 2.
Opposing the belief that the growth in mobile industry has catered only to the top income-stratum of society.8 % in the first three quarters of 2004-05. with both production and domestic sales of motorcycles increasing at faster rates than for scooters in the current and previous years.
55 Crores with total strength of around 225 personnel employed in various capacities. but for this to be successful.
EXECUTIVE SUMMARY Lakshmi Hyundai is into automobile business since last 11 years. Export growth rates have been high both for motorcycles and scooters. It has a total turnover of Rs. they’re needs to be clarity about what customer satisfaction means and what needs to happen to drive improvement.growth. Customer satisfaction is a concept that more and more companies are putting at the heart of their strategy.
NEED FOR STUDY
ever growing market. Also. over the past few years has substantially increased the sales in the automobile industry.
OBJECTIVE OF THE STUDY
. the competition among the dealers of the products has increased with each trying to maximize their customer base. with huge disposable incomes. easy availability of the finances and increasing population of young executives. thus providing the dealer with an insight into the level of customer satisfaction and changing trends of the customer expectations. The study tries to understand the key service parameters and reflect upon the dysfunctional areas.Increasing competition. This makes it imperative for the dealers to provide the best of the services and exceed the customer expectations to achieve customer delight and loyalty.
• To study the customer satisfaction with usage of their cars. • To study the opinion of the owners of cars regarding its features like mileage. Limitations: The study is restricted in scope of owing to the following limitations: Due to constraint of time only city of Hyderabad is selected and so it cannot claim to be a comprehensive study of the population.
. • To study the opinion of the customers regarding the availability and cost of spare parts. • To study the effect of advertisement on the customers to promote the product. price etc. • Gains insights into Customer expectations. • To study the information resources that the customer using before purchasing the car.To study and understand the key service parameters using Customer Satisfaction and reflect upon the low performing areas: • To study about the customer satisfaction on the services provided by the dealers. SCOPE OF THE PROJECT • The research measures the experiences of customers. • Defines and analyses the experiences based on key deliverables. The sample size is restricted to 100 respondents.
sized 100. which would positively influence the customer.RESEARCH METHODOLOGY
Preliminary stage of study.
. The factors scoring high in the interviews were considered to be the key deliverables. potential customers and existing customer numbering 20 was conducted to arrive at key deliverables which would ensure customer satisfaction. potential customers and the existing customers of Lakshmi Hyundai. which would reflect the customer satisfaction. personal interview of sales consultants. based on the key deliverables.a pilot survey. Survey Research: The research was done to learn about people’s preferences and satisfaction of the Lakshmi Hyundai customer. The research was based on a study of a sample. interpret and draw conclusions from the data collected Date Sources: Primary Data: The data is collected directly from each and every customer. using simple random sample selected from the existing database of Lakshmi Hyundai. The research tool (questionnaire) was designed by inducing the various queries. Pilot Survey A pilot survey was conducted to understand the factors. Personal Interviews totaling 20 were conducted for the sales team. Final stage was to analyze. The research included collection of data from the primary sources using the research tool (questionnaire).
Selection is made from the list of Customers during the last one year.
Unstructured interview The interview complemented the primary research tool and helped delver into details of responses provided by the customers. Sampling Size: Sample size was chosen to be 100. then from this we randomly pull names from the sampling frame using some kind of random method such as a random number table or a random number
.Research Tool: Questionnaire (primary tool. derived from the pilot survey conducted. Sampling Unit: In this study the sampling unit used is the existing customer base of Lakshmi Hyundai. The questionnaires were individually administered to each customer to ensure minimum scope for faulty data entry and error of understanding. each member of the target population has the same chance of being selected for participation in the study. In simple random sampling. The questionnaire tried to capture the responses of the customers mainly on the key deliverables.attachment 1) Interview through questionnaire method was employed for the research purpose. This not only validated the responses of the customers but also helped the interviewer understand the expectations of the customers. Sampling Procedure: Simple Random Sampling. and a few questions have been included to gauge the level of satisfaction and to gain insight into customer expectations. For a sample to truly be a simple random sample we need to develop a list or sampling frame that includes almost all of the population. This method also gave the interviewer the scope of entering into a dialogue and understanding the customer’s perception better.
.generator. numbers are assigned to all members of the population and pull the names of those members whose numbers are pulled from the table or generator. Finally. The biggest advantage to a simple random sample is that we get a pretty good unbiased sample fairly easily. The biggest downside is that we may not get all elements of the population that are of interest.
CHAPTER-2 REVIEW OF LITERATURE
To be able to create and deliver customer value is important to understand its components. when value meets or exceeds expectations. If their expectations of value are not met. is a difficult and complex process.
. Customer satisfaction and customer loyalty share many similar traits. the need to gain customer loyalty and retain their loyalty is critical. CUSTOMER SATISFACTION AN INSIGHT According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print more frequently than any other catch phrase used to describe a new found magic for industrial success. Customer value is the customer’s perception of the ratio of benefits to what he or she gives to obtain those benefits. Customer satisfaction is the most effective way to achieve customer loyalty.CUSTOMER SATISFACTION Concept IdentificationAs organizations become increasingly customer focused and driven by demand. however. Figuring out what the customers want. The framework consists of three parts: (1) perceived product quality. Customers are satisfied. who a customer is and what satisfaction really means. (2) value-based pricing. and (3) perceived service quality. The customer Value Triad is a framework used to understand what it is that customers want. value from a customer’s perspective is the ratio of benefits to the risks being taken while buying the product. there is no chance of satisfying them. Before we proceed in to the study of the dynamics of Customer Satisfaction it is important to know about. On the most basic level.
However as with customer there is a subtlety that needs addressing. For the former. with confused objectives failing to address the real issues for customers. closer akin to corporate reputation. one helpful way to look at the problem is to rephrase the objectives: set the sights on helping the customers meet their goals. Customer satisfaction can be defined in many different ways. The user is a person or group who physically uses the product or is the direct recipient of a service.
. there is a risk that customer satisfaction becomes little more than a good intention. Finding the right way for a company depends on understanding your customer and on having a clear vision of the role that customer satisfaction is to play in the strategy.Who really is a Customer? The question of defining who your customers are seems fairly easy particularly if you have segmented your market properly and understand who you are trying to satisfy. The apparent customer is the person or group of people who decide what product to buy and basically have control over the purse strings. a focus on customer satisfaction can work alongside existing segmentations to support revenue generation from high value customers or it can be a company-wide objective rooted in the brand values. it may be sufficient to focus on improving customer service. For example. but for this to be successful they’re needs to be clarity about. However subtlety that frequently goes undetected by many firms is that is that customer set can be divided into two parts. Customer satisfaction is a concept that more and more companies are putting at the heart of their strategy. What does satisfaction really mean? As in defining customer above. but for the latter a broader definition of customer satisfaction is necessary. the apparent customer and the user. Without this. defining satisfaction also appears simple. Satisfaction by most definitions simply means meeting the customer’s requirement. what customer satisfaction means and what needs to happen to drive improvement.
The Influence of the salesperson in Customer SatisfactionIn an article titled. and supportive management styles to get through to the customer. satisfaction with the product or manufacturer. Once the objectives for the customer satisfaction strategy are defined there are a number of steps we can take to make sure the focus on customer satisfaction is effective. The other department and staff in the organization that do not have direct contact with the external customers deal exclusively with internal customer satisfaction.Goff and James S. regardless of their economic worth to the business.
. the management’s job is to provide the staff with support necessary to achieve these goals. has the power to influence – positively or negatively – a company’s reputation. Failing to achieve this can destroy the reputation as well as losing valuable customers. This includes both external customers and internal customers within a company. it must at least include getting the basics right. Boles examine the effects of nonproduct related construct on customer satisfaction with major retail purchases such as automobiles. However. When doing this one must first realize that every member of an organization plays an active role in customer service. “The influence of salesperson selling behavior on customer satisfaction with products. Building a company around Customer Satisfaction With the increase in customer’s demands and competition it has become a lot more important to base the entire company on customer service. but also indirectly. Achieving customer satisfaction generates the profit.” Brent G.Whatever the strategy for customer satisfaction. participative. The top management uses consultative. The staff focuses all of its attention on satisfying the customer’s needs. Every customer. In these organizations top management has frequent contacts with external customers. The article states that salesperson’s selling orientation. Customer focused organizations focus both on customer satisfaction and
profit.customer orientation (SOCO) will affect not only consumer satisfaction with the salesperson and dealer.
A successful salesperson tailors to the needs of each individual customer. Customer satisfaction leads to future purchases. a salesperson may influence customer expectations concerning the product. customer satisfaction represents an important issue because it relates to several desirable outcomes. When a firm’s employees are happy at work. Thereby this may reduce the likelihood of dissatisfaction (Grewal and Sharma. Internal Marketing – how it affects Customer Satisfaction – Successful companies make every effort to ensure satisfaction to their customer by focusing all organizational efforts of the company on providing superior customer service. enabling the salesperson to match his or her presentation to those requirements of the customer. it helps a firm retain its present customers and build loyalty.
. 1991). Internal marketing helps members or employees of an organization understand and fulfill their roles in implementing its marketing strategy. Only angle of customer satisfaction commonly overlooked is the internal aspect. their overall attitude and performance towards the customer enhances tremendously. Their job performance affects the firm’s ability to deliver superior product and customer service (Boone and Kurtz. The internal customer or employee plays a vital role in achieving customer satisfaction and loyalty. A firm’s employees or other departments within the organization make up its internal customers. Internal marketing not only keeps employees happy.In the perspectives of both the retailer and the manufacturer. By helping a buyer obtain product information and providing guidelines about what should be expected during the buying process and use of a product. a salesperson is likely to identify with needs of the customer. and repeated purchases of the same product from the same source. it also shows them how their actions affect the firm’s ability to achieve customer satisfaction. By being customer-oriented. 1999). In other words. By doing this these companies hope to retain their existing customers and attract new ones. Some firm’s do not understand that the treatment of internal customers becomes the external customers’ perception of the company.
Customer Satisfaction as part of Service Profit Chain: A Harvard Business Review article outlines the internal process required to drive growth and increase profitability. The article describes the ways in which service quality contributes to success, outlining the steps in the “Service-profit chain”:
Profitability / Growth Customer Loyalty Customer Satisfaction Value Employee Productivity Employee Loyalty Internal Quality Leadership
CHAPTER-3 COMPANY PROFILE
PROFILE OF HYUNDAI
“Hyundai” a name to be reckoned in the World Automobile industry is Korea’s number one automaker. Hyundai has established an enviable record for growth both in quantitative and qualitative terms transforming itself from a domestically oriented manufacture into a global player and leading contributor to Korea’s economic and industrial development. Hyundai Motor Company is steadily accelerating to achieve the status of world-class automobile company. In December 1967, Hyundai Motor Company (HMC) was born out of the Hyundai Business group, the nation’s largest conglomerate with the purpose of entering the automobile industry to meet the growing domestic demand for cars. Since then, HMC has played a major role in providing transportation to further Korea’s economics growth and prosperity. Entry of Hyundai Motor Company in the Indian Market. Hyundai established its presence in India by opening a subsidiary called “Hyundai Motor India Limited” with a total investment of US$ 614 Millions. The Hyundai project is the largest to be made by an MNC in the automobile sector. The plant near Chennai, in the state of Tamil Nadu is the largest manufacturing plant of Hyundai motors outside Korea and contains nearly all facilities necessary for a self sufficient manufacturing and production site for developing cars. This assembly plant not only boasts it sown assembly facilities but also a R&D center, a performance experimenting and testing center, and a driving testing ground. As such, the India plant represents a family-type combined automobile assembly facility, capable of all production processes, research and development, testing of products, marketing for sales and provision of after sale service in India. In 1997, Hyundai Motor India limited launched “Santro” the best small car at its worldwide debut in New Delhi. Santro is basically a face lifted version of the “Atos”. Santro was introduced in three different models having varying features. Santro was a
Accent VIVA 5-door petrol. and is priced between 3. Accent GVS 3. Accent GLX 4.
Products rolling out of Hyundai Motor India Ltd. Accent CRDI 2.
. Santro Zing XE 2. Getz Santro Zing is a small segment car. with four different versions. Santro Zing XT 3. The six versions are named.2) 6. Accent 3. Santro Zing 2. Santro Zing XG 4. i10 (kappa 1. and is priced between 5. 1. Accent GPX Tornado 6.runaway success in the India market and became famous as the Tall Boy car.38 Lakhs to 4. The products that come out of the Hyundai Motor’s desk are 1. The four versions are named.32 Lakhs.63Lakhs to 7 Lakhs. i20 4. Accent GLS 5. 1. Santro Zing XS Accent is medium-sized car coming in six different versions. It topped the volumes year after year in its segment. Sonata 5.
Asta 3. The Three versions named 1. and is priced between 4. D-Lite (1.81Lakhs. Sportz 6.1) 2.29Lakhs to 5.79Lakhs to 5. Asta 8. Magna 4.36Lakhs. and is priced between 3. Asta SR (AT)
. Era (1.1) 3. Asta(O) Sonata is a luxury car priced between 14Lakhs to 18Lakhs. Sportz (AT) 7. I10 is a small car coming in the nine different versions.I20 is medium size car coming in three different versions. The nine versions named 1. Magna AT 5. Asta SR 9. Magna 2.
best in technology. and is priced between 3.59Lakhs to 5. GVS 1. GLS 1. The Seven versions named. Hyundai as a company is dedicated to create new value for its customers. Hyundai believes that they have achieved the current status as a world-class company by faithfully enforcing seven management principles and creating
1. GVS CRDI 1.3 7.1 (175 Tyre + rear spoiler) 4. pollution managed world.48Lakhs.Getz is medium car coming in the seven different versions.1 3.3 6.1 2. GLE 1. GVS 1.5
Ideology and Environment at Hyundai:
A management motto at Hyundai is “Customer first. GLX 1. best in quality and best value for human beings”. GVS 1. Hyundai Motor Company’s target is to care for the environment and devote attention to the future of our children and their ability to inhabit a clean.
Rama Mohana Rao. Being an engineer who was savvy of automobiles. To always fulfill the commitment to
. Constantly look to improve the quality of our services and process and look for constant development with a focus towards customer delight. In the year 1998. Kukatpally and L. • Lakshmi Hyundai inaugurated in 1998 with technologically advanced service centers at Banjara Hills. As a result.Rama Mohana Rao have helped the Lakshmi Group scale new frontiers and exceed limits. • Sri Lakshmi Motors inaugurated in 1996 in an area of 15000 sft and an extension of the same at Vanasthalipuram in an area of 6000 sft. maintain the highest standard of ethics and social responsibilities. provide products and services of the highest quality.an atmosphere where by each and every member of the company is able to work for the benefit of common future. The flagship of Lakshmi Group • Lakshmi Motors inaugurated in 1989 in an area of 12000 sft.Nagar. NaraChandrababu Naidu. The strength of Hyundai and Honda technology and the dynamism of Mr. meet the performance and price aspirations of our customers and while doing so. he started his career with A. Hyundai motor company is committed to its social responsibilities as it fulfills its mission with dedication and strength of purpose. The show rooms are situated in prime locations and are one of a kind. Goal of Hyundai – “To build the world’s best quality cars”
PROFILE OF LAKSHMI HYUNDAI The success story is scripted through hard work. determination and unitiring efforts of the Chairman Mr. Mission We at Lakshmi are continuously striving to be in tune with technology. Scooters dealership and because of the dedicated performance was allotted with Hero Honda dealership in 1987. The success of these dealerships led to the entry into the four wheeler segment. We were appointed as the first dealer of Hyundai Motors The lakshmi Hyundai showroom was inaugurated by the dynamic Sri.P.B.
• Sri Lakshmi Motors inaugurated in 1996 in an area of 15000 sft and an extension of the same at Vanasthalipuram in an area of 6000 sft. Member of Parliament . • Lakshmi Hyundai inaugurated in 1998 with technologically advanced service centers at Banjara Hills. Rama Mohana Rao works on some simple but effective principles: • A humane approach to business. service orientation. Kukatpally and L. this is true in every walk of life. Above all. The success story of the Lakshmi Group is also scripted through hard work . determination and untiring efforts of Our Chairman Sri K. a successful entrepreneur and above all a man with a heart. he personally oversees the interests of his customers. a qualified Engineer . Chairman Hard work heralds success. his leadership has earned him great respect and he has been personally responsible for the success story. He has inculcated discipline.Nagar
. and above all importance to customer satisfaction to his entire staff and with this encouragement and support the staff has been performing out of their skin to see Lakshmi Group where it should be. Rama Mohana Rao . Milestones • Lakshmi Motors inaugurated in 1989 in an area of 12000 sft.B. • A practical approach of problem solving. At the top.the people dealing with us with a fair mind and conscience. Customers relationship is the mantra he believes and does not compromise on any issue with regard to customer service. Mr. • Concern towards other's problems. Inspire of his busy schedule in the service of his country . Rama Mohana Rao very modestly accords a great deal of credit for his success to his team.
CHAPTER-4 UNDERTAKING THE KEY DELIVERIES
ATM. by telecommunications. and ultimately attracts the customer to the doorsteps. The superiority of the product has to be complemented with a high quality of services. It is designed. emotionally and psychologically. that involves interactions with customers in person. Remote services (employee only) – telephone mail order desk. Interpersonal services-banks. Services at the showroom fall in the second category where there is a high complexity of interaction and hence it becomes necessary for the personnel to be adept in responding to the customer cognitively. A typical categorization of the services based on who performs the action within the services cape can be 1. other than proactive selling. programmed and communicated with two goals in mind: operational efficiency and customer satisfaction. Movie Theater 2.UNDERTAKING THE KEY DELIVERABLES
Human interaction Customer service is a task.
. Self-service (customer only). restaurants 3. which gives a competitive edge to the organization. A high standard of service is what sets apart one organization from another. or by mails.
Test drive – hands-on experience. Process knowledge 5. mass media cannot elaborate on the finer aspects and hence it becomes imperative for a showroom to provide the complete information about the product. Courteousness 3. Communication skills 6. pricing and the offers. This is especially true for high involvement products such as cars. two-wheelers. durables etc. Broachers. leaflets and pricelists – easy reference and handy. 2. Responsiveness and supportiveness.The various aspects and characteristics of service provision. which have been taken into consideration of a customer care team/ sales consultant are 1.
. consumers employ both personal and non-personal sources since both effectively convey information about search qualities. Also. When purchasing goods. The showroom can provide information by adopting the below mentioned list 1. Product knowledge 4. Product information Consumers obtain information about products and services from personal sources (friends and experts) and from the non-personal sources (mass and selective media). Mass media can convey information about search qualities but can convey a little about experience qualities. Sales consultant 3. Politeness 2.
This can be observed in the responses of those 25% of customers who reported a slack in the delivery
.Broachers. leaflets and pricelist are the basic sales tools. The customer has to be given the right information regarding the documents. time taken to process the documents and close the deal. promotional offers and schemes at hand and the pricing of various models at display. confirm the order. Sales consultant has to be knowledgeable to understand the nuances of the specification and should be able to convey the same to the prospective customers. The paper work to be carried out has to be done at a quick pace. After the customer has made a decision to go ahead with the purchase the next logical sequence of steps would be a process the required documents. book the order. It is also the responsibility of the various departments involved to provide a quick service to ensure that the customer has a good and satisfying experience. The sales consultants handle the various queries (technical and commercial) and clears the impending doubts of the inquisitive customer. which has to match the eagerness and the enthusiasm of the customer is quick and prompt delivery of the service. Test drive – the last part in providing information to the customer and gives the customer a hands – on experience of the product performance
Time and Promptness. Delivery on date and time. which elaborately give the product specifications.once the product is delivered it can be assumed that a sale has been done. inform the customer about the date of delivery and prepare the required documents for the delivery of the vehicle. Order booking-This is the process where the onus lies completely on the personnel dealing with the customer. One of the factors.
and gauging the consistency levels at these two stages gives a fair idea of the consistency maintained in the services offered. Inconsistency in service is caused by ever changing expectations of the customer. Furthermore. the customer would expect the same responsiveness from the sales person during the order processing as it was during the pre-sales. order processing and post sale stages. In the analysis we have chosen to analyze the consistency maintained in offering services relating to the human interaction as well as the processing of the documents. thereby leading to a bad experience. Deviation from promised date and time can lead to a lot of inconvenience to the customers. problem of managing the match and capacity planning. This poses a challenge of maintaining the quality of service in every “encounter”. This poses the management.. service firms find it difficult to meet the expectations of the customers all the time without affecting the quality of service. the characteristic of perish ability makes the service non-storable. They exist while they are being delivered / consumed. any aberration would create a sense of insecurity and would thereby breach the bond of trust established between them.” Consistency is a matter of experience. For eg. Consistency in human interaction is observed in the pre-sales.process.
. Consistency “Nothing is consistent by change. The expectation of service grows from every experience the customer has during the sales process. The expectations are not just related to the profile of the customer but also to the occasion and moods. This becomes important in the light of these services being offered in pre-sales and post sales scenario.
making sure that it is one-stop shop (additional accessories being made available like stereo systems. availability of rest rooms etc. Test drive 3. While basic facilities are made available. Sufficient fuel to reach the nearest petrol station 5. Wide range of finance options made available at the showroom 6. It is helpful to offer customers information in printed form. Convenience does not only refer to the physical comforts such as seating. providing relevant information to the customer for evaluating the various options. but also to mental convenience a in helping out the customer to reach a decision.
. The concentration has been focused on checking the convenience of the customers on aspects such as 1. the customer care personnel have to make sure that customer doesn’t feel any inconvenience while the sales process is on. good signing is very important at service delivery points and on self-service equipment. reverse gear buzzers etc. Availability of accessories 4. The visitors have to be communicated how to use and how not to use the facilities at offer.) explain the basic functionally of the product etc. Timings 2. The customer care personnel have to make the first move and approach the visitors instead of making the visitors ask for some guidance. Imparting the basic mechanical functionalities of the car.Convenience The objective of the customer care personnel is to provide convenient and comfortable service and not to push the customer to make the purchase.
Table-1 Human Interaction
1 2 3
OPINION YES NO TOTAL
POLITE 88 12 100
KNOWLEDGE WARRANTY PRESENCE 90 10 100 85 15 100 86 14 100
The graph clarity indicates that approximately 90% of the customers are positive about the human interaction at the showroom.
Table-2 Product Information
1 2 3
OPINION YES NO TOTAL
AVAILABILITY KNOWLEDGE TEST DRIVE 88 12 100 86 14 100 88 12 100
The graph shows that the brochures. OF RESPONDENTS 100 80 60 40 20 0
POLITE KNOWLEDGE WARRANTY PRESENCE
YES NO 12 10 15 14
The personnel score a high 93 (approx. Approx. 85customers agree that the sales consultant was knowledgeable and was adept in
. polite. Nevertheless. which is area to concentrate.HUMAN INTERACTION
NO. knowledgeable and communicating the warranty and schedule but there is a slight decrease in the attention provided at the time of delivery. the overall human interaction is above the acceptable levels. leaflets and price list are readily available.) in being courteous.
OF RESPONDENTS 86 88
YES NO 12 14 12
Interpretation: The showroom scores high in providing the relevant product
information and is leaving no stone unturned to provide the specific information needs of the customers.
Table-3 Time & Promptness
FAST PROCESSING AT ORDER
DELIVERY AT PROMISED
FAST PROCESSING AT DELIVERY
1 2 3
YES NO TOTAL
90 10 100 39
88 12 100
92 08 100
. And almost every customer was offered a test drive (96%). At most care has been taken to ensure that the customers are provided with the product information.equipped with the product information.handling the queries of the customers.
100 90 80 70 60 50 40 30 20 10 0 88 NO. This also reflects that the customer care personnel are well.
Approximately 75 customers feel that the processing was fast. and the sales personnel have to take additional care to ensure that the customers is communicated the unavoidable delays well in advance. this area is to be handled well by the customer care as the other arrears are scoring well above 80. 25 people among customers are unhappy about the promptness in the delivery of the vehicle. It is also to be noticed that the customer is anxious to get the delivery of the car as soon as possible. OF RESPONDENTS
100 90 80 70 60 50 40 30 20 10 0
TIME & PROMPTNESS
8 FAST PROCESSING AT DELIVERY
FAST PROCESSING AT ORDER
DELIVERY AT PROMISED PARAMETERS
This is the area where the customer satisfaction level has gone down to 75.
84 customers have responded positively about the work being carried out quickly.
Consistency in processing
SNO 1 2 3
OPINIONS YES NO TOTAL
ORDER PROCESS 86 14 100
DELIVERY 82 18 100
Inferences Consistency in processing:
The customers have responded positively.) of them observing that the processing has maintained a consistent level. which is acceptable.
NO. about 80 people (avg. OF RESPONDENTS
CONSISTENCY IN PROCESSING
100 90 80 70 60 50 40 30 20 10 0
YES 14 18 NO
ORDER PROCESSING DELIVERY PARAMETERS
The showroom maintains a consistency level of 85% (avg.
Consistency in Human Interaction
1 2 3
OPINION YES NO TOTAL
ALTERNATIVES 90 10 100
ALTERNATIVES 88 12 100
. of processing consistency and consistency in human interaction).
Consistency in Human interaction
The interaction with the customers has fallen from 93 prior to the sale to 86 after the sale is done. OF RESPONDENTS
YES NO 10 12
ALTERNATIVES ALTERNATIVES PARAMETERS
The showroom maintains a consistency level of 85 (avg.
CONSISTANCY IN HUMAN INTERACTION
100 90 80 70 60 50 40 30 20 10 0 90
NO. which is acceptable. of processing consistency and consistency in human interaction).
SNO OPINION MECHANIC
1 2 3 YES NO TOTAL 82 18 100
FUEL 90 10 100
TEST 88 12 100 43
AVAILABILITY CONVENIENCE 86 14 100 84 16 100
OF RESPONDENTS 80 60 40 20 0
MECHANIC FUEL TEST
Though there are 20 of people who have not utilized the finance option provided by the showroom.Inferences The showroom scores a very high percentage in providing convenience to the customers.
CALCULATION OF SALES SATISFACTION INDEX
Sales satisfaction index is the index of overall satisfaction of Lakshmi customers as a whole. which in turn is the cumulative of the positive responses of the customers. The overall satisfaction is the average of the scores of the key variables. The responses of the customers have also been recorded over repeat purchases. the point to be taken is that 80 of the customers have utilized the options provided by the showroom. referrals and their satisfaction to cross check with the calculated result
YES NO 86 84
100 82 NO. converted to a scale of ten.
4 8.4 on scale of ten
.No 1 2 3 4 5
Key Deliverables Human Interaction Product Information Time & Promptness Consistency Convenience Cumulative Score
Score 210/225 215/225 175/225 254/300 413/450
Score on scale of Ten 9 9 7 8 9 42
Sales Satisfaction Index Overall Satisfaction = = = Sales Satisfaction Index = Average (Cumulative Score) 42/5 8.Sl.
No A B C D
Age Group 20 to 30 30 to 40 40 to 50 Above 50
No of people 9 25 25 22
.CHAPTER-5 DATA ANALYSIS
1) Age group:
Sl.e.25. the remaining age groups are 30-40 and 20-30 years having 25 and 9 respectively. 22.No A B C D
occupation Employee Business NRI Others
No of people 35 20 15 8
. the next group is 40-50 years i.e.25 20 15 10 5 0 20-30years 30-40years 40-50years above 50
INTERPRETAION: From the above table shows that the respondents of the age group of years above 50 i.
business people numbering 20 . NRI’s 15 and others 8 people.
3) Which model of hyundai car do you own?
Sl.35 30 25 20 15 10 5 0 employee business NRI others
INTERPRETAION: From the above table shows that the respondents of the occupation are mostly employees numbered 35.No A B C D Brand I10 Verna Accent Santro No of people 35 18 10 12
12 Accent C . 10 I10 A . 18
Interpretation :The following graph shows the number of cars in the total of 75 persons i10 is owned by 35 people.santro D .
4) Which feature is the best one in Hyundai car ?
Sl. and Verna owned by 18 and Accent owned by 10 people and Santro by 12 people. 35
verna B .No A B C D E F feature Mileage Price Brand Style Mileage & brand Mileage & style NO of people 14 4 16 18 13 8
and Price by 4 and Brand by 16.No A B C D
RANK Good Better Best Poor
No of people 25 20 40 5
5) how do you feel when you drive Hyundai car?
Sl.20 18 16 14 12 10 8 6 4 2 0
18 13 8 Series1
Mileage & Brand E
Mileage & Style F
Interpretation:The following graph shows the number of what features you consider while you purchase in the total persons Mileage by 14. Style by 18.. Mileage and Brand by 13. and Mileage and Style by 8.
the next group is better i.e.40 35 30 25 20 15 10 5 0 good better best poor
INTERPRETAION: From the above table shows that the respondents of the experience of people while driving Hyundai cars is good i.20. 25. the remaining people who feel best is 40 and others who feel poor experience are 5 respectively.
6) Are you satisfied with your vehicle’s mileage? Sl.No A B Vehicle’s mileage Yes No No of percentage 61 14
A Yes B No
Yes A. 61
Interpretation :The following graph shows the number of people who satisfied with mileage of the vehicle in the total respondents response given by persons Yes by 61 and No by 14.No B.No A B
Will you recommend Hyundai product to anybody?
Recommendation Yes No No of percentage 45 30
Interpretation :The following graph shows the number of people who recommend Hyundai cars in the total persons yes by 45 and No by 30.
8) What do you think about hyundai’s customer service?
No of people 40
. 30 Yes A.No B.
e.B C D
Good Better Poor
20 30 5
40 30 20 10 0 excellent good b etter poor 40 20 30 5
INTERPRETAION: From the above table shows that the respondents of the people about Hyundai’s customer service is excellent i. the next group is good i. the remaining people who feel better is 30 and others who feel poor experience are 5 respectively.20.e. 40.
9) How do you feel about company’s response towards customers?
Sl.No A B C D Source Excellent Good Better Poor 54 No of percentage 38 17 10 7
Poor Better Excellent Good
Interpretation :The following graph shows the number of response of customers towards the products from the total number of 100 people good are good 17.Did you receive the product on delivery time?
Sl.No A B Delivery time Yes No No of percentage 55 20
. Excellent 38. better 10 and poor are 7.
No B.No A B After sales service Satisfied Not satisfied No of percentage 75 5
11) Are you satisfied with company’s after sales service ?
Sl. 20 A Yes B No Yes A. 55
Interpretation :the following graph shows the number of customers who receive the product on delivery time is yes by 55 customers and no by 20 customers.
how do you feel the experience at show room? Sl.
12.No A Best Brand Ambassadors Satisfied 57 No of percentage 55
.80 70 60 50 40 30 20 10 0 satisfied not satisfied
The number of customers who satisfy/not satisfied with the after sales service of the company from a number of 100 customers are satisfied 75 and not satisfied 5.
No A B Test drive Yes No No of people 80 7
Interpretation :The following graph shows the consumer’s experience at show room the number of customers who satisfy is 55 and who does not satisfy is 29
12) Were you offered test drive? Sl.
Interpretation :The following graph shows the number of customers who were offered test drive for the product is yes by 80 customers and no by 7 customers.No B.no A B C
Customer response Fully satisfied Just satisfied Not satisfied
percentage 71 15 4
. 7 A Yes B No Yes A.
14) have you satisfied with the usage of Hyundai cars?
80 70 60 50 40 30 20 10 0 fully satisfied just satisfied not satisfied
The following table shows that the respondents who satisfied with dealer’s performance is better71.good 15 and Poor is 4.
CHAPTER-6 FINDINGS & SUGGESTIONS
CONCLUSIONS AND FINDINGS
• The probability that the customers would repeat that purchase at the same showroom is high. The industry SSI (2003) is 104 out of 126 according to J D Power Asia pacific. This is the only area of concern that has emerged form the city. • The satisfaction levels can also measured with the level of recommendations to friends and associates. which is a good sign.
. the showroom should persist on high levels of commitment to maintain the good image it has created.4 on scale of ten (refer page 32). • The sale satisfaction index of Lakshmi Hyundai showroom is 8.• Lakshmi Hyundai enjoys a high patronage from its customers. It is evident that more than 80% customers are satisfied with the service offered at Lakshmi Hyundai. • It has been observed that 25% of customers have reported a slack in the delivery process. • Most of the customers had a good experience of shopping at Lakshmi Hyundai. which is exceptionally good. And Hyundai scores 105 out of 125. • In the interview it was found that the customers are happy about the training programs under taken by the showroom. which train the customers to negotiate minor breakdowns comfortably.
Even though the complaints are minor. Therefore. It needs to improve its delivery process and time. this is the area which I recommend to the showroom to focus a little bit more.
. The only couple problem noticed are: Some of the customers have complained about the slack in the delivery process and timings. Need to become little quick and fast. Some of the customers have also complained about the after purchase services provided by the showroom.The overall sales satisfaction index from the study reveals that the company is performing very well and customers buying are much satisfied with the service given to them. the showroom needs to resolve the customer after purchase service issues in order to achieve customer satisfaction.
which feature is the best one in Hyundai car? a) price b) style c) mileage d) quality e) mileage&quality e) mileage & style 4.CUSTOMER SATISFACTION INDEX
Details: Vehicle No: _______________________________________________________ Model: ___________________________________________________________ Customer Name: __________________________________________________ Telephone No: ______________________Mobile:________________________ Date: __________________Customer signature: ________________________
1. will you recommend hyundai product to anybody? a) Yes b) No
. How do you feel when you drive hyundai car? a) Good a) Yes B) better c) best b) No d) Poor 6. Which model of hyundai car do you own? a) Santro b) Verna c) Accent d) i10 e) i20
4. Are you satisfied with your vehicle mileage?
7. Age group a) 20-30 2. Occupation? a) Employee b) business c) NRI d) others b) 30-40 c) 40-50 d) Above 50
How do you feel about company’s response towards customers? a) Excellent b) Good c) Better d) Poor
10. did you receive the product on delivery time? a) Yes b) No
11. Are you satisfy with their usage of the car? a) fully satisfied b) just satisfied c) not satisfied
15. __________________________________________________________________ __________________________________________________________________
. Please give your comments/suggestions to enable us to improve satisfaction of customers at this Hyundai authorized showroom. are you satisfied company’s after sales service? a) Satisfied b) not satisfied
12. what do you think about hyundai’s customer service? a) Excellent b) Good c) Better d) Poor
9.7. How do you feel the experience at the showroom? a) Satisfied b) not satisfied
13. were you offered test drive? a) Yes b) No
Attachment – 2
Experience at Showroom
EXECELLE NT 20% POOR 5%
SATISFACT ORY 15%
GOOD SATISFACTORY EXECELLENT POOR
Attachment – 3
Recommendation to Friends
DEFINITEL MAY NOT Y NOT 8% 7%
DEFINITEL Y 25%
MAY DEFINITELY DEFINITELY NOT MAY NOT
DEFINITEL Y DEFINITEL 16% Y NOT 5% MIGHT 14%
PROBABL Y 65%
PROBABLY MIGHT DEFINITELY NOT DEFINITELY
. Marketing Management: PHILIP KOTLER.edu http://www. Research Methodology: KOTHARI.jdpower.asq. C.R.BIBLIOGRAPHY
Books: Principles of marketing: KOTLER ARMSTRONG. (Analysis.bus. Websites: http://www. Planning Implementation and Control) Services Marketing : TATA Mc GRAW HILL.jp www.umich.co. Marketing Research : G.BERI.
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